Commission Calculator
Commission on a sale, including a split and a tiered rate above a threshold.
Commission is a percentage of a sale value, but two complications make people reach for a calculator.
How the commission calculator works
Commission is a percentage of a sale value, but two complications make people reach for a calculator.
The first is the split: an agent's commission is often shared with the brokerage, so the headline rate is not what the agent receives. The second is tiering — a higher rate above a threshold, applied only to the portion above it, which is the same marginal structure as an income tax bracket and just as often misunderstood. Crossing the threshold never reduces your take.
Enter a base rate, and optionally a higher rate that applies above a set amount.
Formula: commission = base rate × amount up to the threshold + higher rate × the excess
Worked examples
| Inputs | Your commission | Note |
|---|---|---|
| 2.5% on a 750,000 sale | £18,750.00 | 18,750 |
| With a 50/50 brokerage split | £9,375.00 | 9,375 to the agent |
| A higher rate above 500,000 | £21,250.00 | 21,250 |
FAQFrequently asked questions
How do I calculate commission?
Multiply the sale amount by the rate. 2.5% of 750,000 is 18,750.
What is a commission split?
The share of the commission the agent keeps after the brokerage takes its part — commonly 50/50 early in a career, rising with experience.
How does a tiered rate work?
The higher rate applies only to the amount above the threshold, exactly like a tax bracket. Crossing it never leaves you worse off.
Is commission negotiable?
Usually, particularly on higher-value sales where the percentage produces a large absolute figure.
Does this include tax?
No. Commission is income and is taxed accordingly in every market; the rules differ, which is what the market-specific pages cover.
Where these figures come from
- CFA Institute — Quantitative Methods: The Time Value of Money — the discounting, annuity and IRR conventions used here
- US Federal Reserve — Regulation Z (Truth in Lending), APR calculation — why APR includes fees where a nominal rate does not
- MoneyHelper (UK Government-backed) — the UK's free money guidance service
Last checked: September 2026. These are the standard textbook formulas; the conventions named are those of the CFA Institute curriculum and ISO 80000 usage.